Correlation Between Linewell Software and Industrial Bank
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By analyzing existing cross correlation between Linewell Software Co and Industrial Bank Co, you can compare the effects of market volatilities on Linewell Software and Industrial Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Linewell Software with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linewell Software and Industrial Bank.
Diversification Opportunities for Linewell Software and Industrial Bank
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Linewell and Industrial is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Linewell Software Co and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Linewell Software is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Linewell Software Co are associated (or correlated) with Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Linewell Software i.e., Linewell Software and Industrial Bank go up and down completely randomly.
Pair Corralation between Linewell Software and Industrial Bank
Assuming the 90 days trading horizon Linewell Software Co is expected to generate 2.19 times more return on investment than Industrial Bank. However, Linewell Software is 2.19 times more volatile than Industrial Bank Co. It trades about 0.04 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.08 per unit of risk. If you would invest 887.00 in Linewell Software Co on October 12, 2024 and sell it today you would earn a total of 141.00 from holding Linewell Software Co or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linewell Software Co vs. Industrial Bank Co
Performance |
| Timeline |
| Linewell Software |
| Industrial Bank |
Linewell Software and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linewell Software and Industrial Bank
The main advantage of trading using opposite Linewell Software and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linewell Software position performs unexpectedly, Industrial Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Linewell Software vs. Qiaoyin Environmental Tech | Linewell Software vs. Jiangsu Yueda Investment | Linewell Software vs. Shenzhen MYS Environmental | Linewell Software vs. Gansu Jiu Steel |
| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Eastroc Beverage Group | Industrial Bank vs. Qingdao Foods Co | Industrial Bank vs. Great Sun Foods Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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